tv Bloomberg West Bloomberg December 15, 2014 1:00pm-2:01pm EST
>> live from pier three in san francisco, welcome to "bloomberg west." we focus on innovation, technology and the future of business. i'm cory johnson in for emily chang. oil prices dipping again -- the selloff accelerating after the hostage situation in sydney. perhaps there were fears of ties to the middle east. crude down another 2%, roughly $50 -- $56.50 a barrel. this has pushed the russian ruble to another record low, slighting the most since 1998. -- sliding the most since 1998.
the company is being sold for $3.6 billion, 12% higher than friday's closing price. the computer networking company hired advisers after elliott management acquired a 10% stake in riverbed last year. pop --is banning uber the announcement rum the french -- announcement from the french ministry. ' notovernment says uber meet the basic requirements, including background checks and training. uber says it will take the issue to court. surveymonkey has raised $250 million, reportedly valuing the company at $2 billion. also pitchedstors
in on this round. the online questionnaire service will use the money for acquisitions and have insiders sell some of your stock -- some of their stock. to the lead story -- the hostage crisis is over and the coffee shop in sydney, a full stop after atormed the cafe gunman held people hostage for nearly 17 hours. reports say the gunman is among to fatalities. hospital wereheld taken to local hospitals will stop >> this is a very disturbing incident. it is profoundly shocking that innocent people should be held hostage by an armed person claiming political motivation. >> the government identified an iranian man, a self-proclaimed radical chic who forced hostages to put an islamic flag in the window and made site -- made
demands on facebook and youtube. when you look at this situation, do we know that much yet? >> i did not hear the last point you made. >> is this a successful negotiation or failed negotiation when you see guys run in with guns and at least one patella to be on the gunman itself? >> you can say negotiations failed because the negotiators in contact with this disturbed person bought 15 hours of time in which there was no violence. that provided sufficient time for tactical forces to prepare. obviously, they would have preferred for this fellow to surrender but as we always say in these incidents, the outcome is decided by the behaviors and actions of the perpetrator. they went in with little choice. >> is there a global standard of
process for negotiations? what happens behind the scenes in a situation like this and how is it aided by the global knowledge other organizations have? >> certainly, law enforcement in north america and australia and new zealand are very advanced in managing these incidents. we have well-trained negotiators and tactical teams. the method accepted by all as to contain the situation and make sure the threat does not spread and open up dialogue. that's generally in the best interest of the perpetrator as well. unfortunately, more and more someone to die. at the end of the day, it is the perpetrator's behavior. threaten or actually harm folks, and police are left with
only recourse other than to try to intervene to save the lives of as many hostages as they can. >> is interesting to me that the area of social media, we have the gunman insisting his demands the broadcast through the facebook accounts of some of the hostages. chestes that change the game of negotiator -- the chess game negotiators play? >> typically what empowers the seed to theether to perpetrators demands or not. if you can capture the media's attention and issue a statement on his own, that can become more problematic. certainly, with social media and other ways of communicating, this presents increasing challenges for law enforcement in the future. >> it is interesting, the democratization of information. why do you want to keep the
gunman in this case from broadcasting the demands? >> it is a give and take. the perpetrator wants something, we want to put him in the position to have to come to us to get it. if he wanted food, we would trade food for the release of a hostage. if he is able to have his demands independently or accomplishes goals independently, it places responders in a more difficult and challenging situation. >> i wonder if there was pressure on some of the companies to not let those tweets go out and let the information get out. is that the kind of thing the fbi might pursue in situations like this? >> i don't know if there was any
effort made by the australians and i think every case is situational. there may be situations where it advantageous to monitor what this person is saying and to him. in other cases, they might find it more problematic. it's hard to come up with a hard and fast rule that applies to all those situations. >> we are glad it did not turn out to be a lot worse will stop thank you very much. up next, sony is fighting back against news organizations for reporting details from the massive hacking attack. does sony have a case or might the first amendment avail? you can watch us streaming, on your phone, tablet, on bloomberg.com and on amazon fire tv. ♪
everything from salary details to salacious e-mails between executives. now sony is trying to make it go away by hiring an attorney who a letter tod out media organizations, demanding we stop publishing the private information hackers have found out. in his letter, he says it is stolen information and warns sony will hold media companies responsible unless the information is destroyed. joining me now is a cyber law principle and former head of the justice department computer crime unit. this raises all kinds of issues, not least of which that sony's is this is being damaged by these attacks and journalists like me reporting on it will sony>> it's the same time is sending letters out to journalists telling them not to release information that was stolen, hackers or sending e-mails to sony telling them not to release a movie. everyone is trying to keep stuff confidential and the best way to
keep it confidential is to keep it from being hacked in the first place. informationrelease other people may not want to have released. that is what they do. it is a really touchy issue. >> it certainly is. sony wants the first amendment on one side and not on the other side, which is maybe ironic or maybe hypocritical. do they maintain that this is stolen property? something that was private and discussing it with a journalist rakes the law? >> the law does a bad job of treating information is property. if i break into your office and steal a dream of papers. i've stolen something but if i read those vapors and get the information from them, it's not clear have stolen anything. we look at information differently, classified information or trademark information or private
information and what the journalists need to do is act responsibly and what they disseminate. >> we have all kinds of people online changing the rules of who is a journalist and what is journalism. it is one thing if someone gets a hold of these documents and reads them. it's another thing if a journalist gets information and retransmits them. >> the law makes no distinction between a blogger, a person with a computer, someone who sends out a tweet, the new york times, or bloomberg. they are all protected by the first amendment will stop >> that is a recent understanding from the supreme court. >> that is correct. one of the problems as a traditional journalist is you have this pressure that if i don't publish it, someone else will and they will get the scoop. it is a difficult moral, ethical
and legal choice for a journalist to decide what they need to do in this case. >> i won't beg to differ, but aaron sorkin will. he has some interesting comments. ,e says if you close your eyes you can imagine a hacker sitting in a room combing through the documents to find the ones that will draw the most let. and in the next room are american journalists doing the same thing. as demented and criminal as it is, at least hackers are doing it for a cause. the press are doing it for a nickel. what do you say? >> when you ask yourself the question what is newsworthy, when you get a scoop rum somebody, you do that. what is it that is newsworthy? there's little distinction between what is newsworthy and what will get the most bang. there is a lot of that going on. on the other hand, releasing the name of the associate producer's
ethical records, there is no news value in that and it serves no purpose other than to embarrass somebody. that is the problem about being responsible. the other problem is when you are responsible, someone else may not be. wonder about the connection to what is news and what isn't news western mark naked pictures of celebrities that were hacked were much more salacious than the salaries. i am interested in the business acts -- is this aspect and also that that there has been a cyber attack on a business. is the value of news in the eye of the beholder and is that going to matter to david way? >> this is a dangerous president for businesses all over the place. ultimately, they will be hacked because the hackers are getting that good.
all the confidential information and trade secret information, you can have all the legal trade protection you want but all it has to happen is one person leaks it and the legal protection is out the window. companies need to do a better resourcesend better defending these attacks rather than responding to them afterwards. it is almost impossible to put the genie back in the bottle. >> maybe i'm polly anna and hoping that a journalists can decide what is news and what is not. thank you very much. coming up, the twitter cofounder, evan williams, launches his latest project. obvious ventures -- can it be as successful as his previous ventures? ♪
>> this is "bloomberg west." i'm cory johnson. could investing in companies purposevide profit and be the key to income? evan williams seems to think so. he has found a new venture capital firm focusing on moral positive investing. obvious ventures focuses on issues like sustainability. joining me to talk about world positive investing and what that means is the cofounder of the company. i've talkedidea and to evan about this, about the notion of kinds of companies that if you are going to go through all of this blood, sweat , and tears come he might as well make it do something good
in the process. simple idea ofs combining profit and purpose is a great one. it is founded on our hypothesis that really big companies are going to be built high solving grand challenges in the world like climate change, like chronic disease. we think there's been a amount of work to do and profits to be made. >> does twitter solve a massive world problem? >> i think twitter has given hundreds of millions of people a voice and i think we can point to auto social change, big and small. >> it is interesting in the case media and going back to blogger, these are media focus. these are things giving people voices through technology. >> we have three themes at obvious ventures. one is sustainable systems, for-profit solutions to climate change.
we invested in a company called the on meat. they are taking plant protein and creating delicious protein products that are an alternative to eating animals. that is good for the climate and we think it's a good business. >> it is something that is hard for most people in the world to get enough of. what is the second? >> the next one, we call people power. we think there is opportunity to use clout cloud and mobile technologies to empower individuals and small businesses . we have almost 30 million small businesses in the u.s.. it is where job creation happens and is businesses have typically been underserved. we see new businesses that actually give small businesses a full stack of services they can run. >> what is brees works? >> is a san francisco startup and they make software for
plumbers. people who run their business canof their truck, they accept payments right on their smart phone. >> it sounds like a huge market opportunity. >> we think so. it is interesting to piggyback cloud ---- mobile, the >> we call that digital democratization. the fact that everyone has a super computer connected to the internet in their pocket is fundamentally game changing. does this mean someone will walk in with a pitch and adding one more page saying we are also do-gooders, or is it a different way of thinking? >> one of the things we have written down is obvious ventures is the opposite of corporate philanthropy. it is not about running a traditional business and doing good on the side. not that we are against that,
but we are looking for businesses where that is integrated. company should do what salesforce is doing -- at a certain percentage of revenue toward charity. but they are not told on social good. >> that is important and we love that companies do that. we want to go one step further and look for companies were each dollar of revenue has a positive benefit. >> does that change the way -- when you look back on your career, you were helping people's bread teachers. something -- you can share pictures with your grandmother but that was not the purpose of the business. >> i would get e-mails from customers saying thank you so much. i've never met my granddaughter and i just opened the envelope and saw pictures for the first time. a woman in guatemala sent that
no. >> the competitor with a bunch >> from yours -- hometown of rochester. >> did that change the way you do your work? i wonder if the companies you are backing have a different sense of their work and proceed to do it in a different way? >> it did for me. i've got much more about what is the meaning of the business i am building? how do i combine money and meaning? i think we're seeing with entrepreneurs a new wave of millenial entrepreneurs that want to work on something that matters. they want their business to be profitable if they also want to change the world for the better. >> that is awesome. thank you very much stop and armed gunmen took siege at a 'sop in hostage and uber
response was controversial. surge pricing. how bad was this latest screwup? we'll talk about that next. ♪ is when he six minutes after the hour and a bloomberg television is on the markets. it's look at where stocks are trading. we have had to clients throughout the session but they have been getting smaller as the day has gone on after lower prices for oil today. energy stocks are not. individual movers we are watching -- cirrus logic shares having their best days after -- best day after barclays upgraded them, saying the company that develops audio components for smartphones is poised to make significantly more money for each iphone sold next year. shares of select comfort record rising. the mattress maker was raised to neutral.
>> you are watching "bloomberg west" where we focus on innovation, technology and the future of business. hostage crisis has ended in the city chocolate shop where it took place after an armed gunmen took patrons hostage. for anadrupled its fares extra can people. their minimum charge with $82. theysent out a tweet -- started by sending out this tweet -- "we are all concerned with the vent in the central business district, so fares have increased to encourage drivers to come online and pick up passengers in the area." and
they updated their site saying trips will be free. higher rates are still in place but we encourage drivers to get in all stop finally, after posting their tweet -- they say uber rides are free. how damaging was this move and is it time for uber to figure out something about crisis business management, let alone crisis pr. guest is somebody who knows a little something about crisis pr. the pr thing, they have done a horrendous job. >> i don't know if it is a cultural thing at the company but they could have acted more quickly in changing up policy. got picked up in
social media and it went wild and hurt them. that this a notion was mathematic and all the rhythmic, but the first tweet recognized what was happening in saying to respond to this crisis, we have responded by raising prices. >> that happened in new york when this crisis first reared its head. during hurricane sandy, they raised prices, saying it brings more drivers into the area. it also brings more profit into that's the last message you want to communicate. >> is there a message you could give to consumers say this is how our business works -- we provide a profit incentive for the driver. is there no winning of that is the message? uber needs to be more sensitive as to how their operations and decisions affect the public. have a lot of different publics.
they have regulatory authorities, to have consumers who use it. they've got drivers and they've got investors, but i think they are taken care of. they have to look at each of these individually. gets picked up in the news media or the social spheres, it can affect all of those different publics and that is where they need to be a little more closely -- they need to watch it more closely. >> i have a little sympathy for them because they are growing dramatically all over the world and for every crisis we find out, they have to be handling 99 behind closed doors and getting it right. but these very public screw ups are starting to add up. not just surge pricing, there's a surge in pricing. >> it an incredible company. they are in 230 markets and they have disrupted an entire
industry. they provide a useful service around the world. , in doing that, they have amassed reputation capital. ultimately, that capital is going to disappear. -- we thought groupon and andrew mason were immune and look what happened there. they need to be careful about their reputation. >> i don't know if we all thought that. hads talk about what uber to say. they say surge pricing is algorithmic and responded automatically to the large increase in demand. as soon as they became aware of writers gotn, charge -- riders who got charged, we will refund it. >> it sounds like because of kept it ins, they
place for a little while at least. >> i'm not there, so it is hard as an outsider to comment on what decisions they made. it would be nice if they didn't decide after something broken the news media and they recognized something is happening in sydney and maybe this is not a good time to institute surge pricing. >> is the technological response appropriate? deciding when to put it on a human level? >> it funny. for a while, when there were had a with drivers, uber canned response they gave to every media outlet which inquired. now i think it is more human eyes but it's not responsible to do that. there needs to be some human interaction, especially in a situation like this will stop look at what happened with hurricane sandy. >> i don't know if i should be tweet isredit -- that
very specifically referring to what's happening in the central business district in sydney and that was their decision, human decision to share -- to stay with it once the elder them kicked in. >> it is a question of judgment. they truly believed by raising prices that they will bring more drivers and. they have to rethink that now. i hope they do. >> the didn't when huge snowstorms hit new york last year. they didn't in the storm of the decade here in san francisco. at their headquarters, they had this huge storm, yet they quadrupled fares will stop it seems like this is the way they run the company, not an aberration will stop >> the company is driven a lot by its investors, which is another issue. is, they've as uber
got some of the most influential investors from benchmark and google. ashton kutcher weighed in. they are immune to some degree, on thishey continue track, at some point, those investors are going to make a change. it's a cultural issue that needs to be addressed. should know where their cars are and how much they cost. >> --you much all stop thank you very much. what is autodesk doing just sent "rom "bloomberg west? you can watch us streaming, tablet, on your phone, on apple tv and amazon fire tv.
>> this is "bloomberg west" and i'm cory johnson. how do you get a group of software developers to understand real-life implications of their coding? a our case, you build workshop on the waterfront right next to our offices and get your hands dirty, building what customers design. we got a recent look at the autodesk artist in residency program with the autodesk ceo. steps from the bloomberg west studio, san francisco's. nine is the geppetto's work stop -- workshop of laser cutters and 3-d printers. autodesk built this cutting-edge
workshop -- get it, cutting edge? understand itssk software customers. >> this is a space where we use the test lab and take things designed with our products and turn them into physical goods. people can make whatever they want, so they do. lab.is like a testing >> employs design on autodesk software but build on all kinds of equipment. >> it is a way to test what we do. it's not just enough to make the computer model, we have to do the real thing. it's just a big printer. >> the big idea is materializing ideas so they can see things
they've never seen before. >> you can look at an x-ray or mri or cat scan. there was a surgeon the other want to dod i never another brain operation without making one of those ahead of time will stop >> it that notion -- that new possibilities -- it is that notion. autodesk is looking for a new group of artists to build at are nine starting next year. "autumn line" is coming up at the top of the hour. matt miller has a preview of that broadcast. >> you called me mark. we are brothers from other mothers. coming up at the top of mark's show -- i'm filling in for him today. we will talk about what happened in sydney.
media goings global to cover any crime committed by someone claimed to be an islamic terrorist and go on a frenzy with it? i think the problem i -- i think unfortunately the answer is yes. we have watch unfold over the last 20 hours covering from our australia euro and here in new york. then we will move on to another topic -- today is the last time -- your kids are not old enough to be needing obamacare yet, but today is the last day, the deadline for these millenials who have been too lazy to do it otherwise, to sign up for health care. we will talk to the ceo of a health care company to ask what he thinks about how the system .orked this time hopefully everything is going to work out well. certainlybers have
i, too, would like to commend our police. while anyone could second-guess what occurred in the last hours, they are the ones to had to make the decision. it was tough, exacting work, whether they were part of the team that had to make that entry and deal with the situation, i want to point out they have saved lives. they have saved many lives. to those men and women, all that were involved, we thank you. as the commissioner, i think you , as a community, australia thanks you. thank you you are prepared to put your life on the line to keep us safe. it's a very honorable cause and for that, our attitude goes out to you. you that wete to have accounted today for 17 hostages. that includes the five that escaped and the number that have been caught up with. some with dramatic injuries,
some with medical conditions. , we haveve reported two deceased amongst the hostages and six that were uninjured. we also have a lone gunman who has been shot and killed. we have a police officer who has been injured as a result of an gunshot wound to the face. i have talked to that officer and he is in good condition. he is being assessed and will remain in hospital for some time . not too long, we hope that he is grateful to be alive, let me assure you. gentlemen, isnd where i will hand it over to you for questions. >> [inaudible] what we don't do is compete with those who have to make the call. they made the call because they believed at that time if they did not enter, there would have been more lives lost will stop -- more lives lost.
>> [inaudible] >> i think the events unfolding led them to the time that it was actually time to deploy. now is not the time to speculate or second-guess. we will go through this investigation. we have talked to the corner and you must understand the corner has jurisdiction and we are going to work with the corner at this stage -- the coroner at this stage. >> [inaudible] >> at this stage, i'm not going to go into that right now. we are looking out for the hostages and the families caught up in this and of course we have two that have died as a result of actions inside that cafe and we are trying to make sure we are there to comfort those families will stop at the --
comfort those families. we are dealing with this critical incident and looking after these hostages and the families of those who have been caught up in this and of course, we have two that have died as a result of actions inside that cafe and we are trying to make sure we are there to comfort those families. >> [inaudible] >> they are part of a hostage reception plan. .e need to talk to them they are being looked after in terms of their psychological needs and we will work with them but at this stage, they are being well cared for. the families are certainly involved in this process. >> do you know if the hostages were killed by the gunman? >> as a result of an exchange of gunfire inside that premises,
police moved in, and at this stage, we have a number of people who are injured. [inaudible] >> again, that is part of what we -- of what will come out as we go further, but we are not going to enter into that. >> [inaudible] [inaudible] concerned about this horrendous attack that has taken place in the heart of our city. there are many questions that will come in the hours and days
and weeks. i assure you we will answer every single one and get to the bottom of this and do everything possible to ensure we do not see happen again in the city what we saw in the last 24 hours. >> [inaudible] i can assureage, you that particular premises has been secured and that this stage, we have no explosive .evices >> how were they treated? any indication of that? >> at this stage, rather than go -- until wentil went into the emergency action, we believe no one had been injured.
>> [inaudible] stage, that will be part of what will come out. we will be talking to you later today and am sure we will be able to give you some more information. again, we will not, rises investigation. it is important we get this right. --always need to be mindful we want to make sure it is accurate. when it is accurate, only then, will be released to stop thank you. >> that was the new south wales talkingommissioner about what went on in sydney today and the decision to go when and when they did so. also giving updates on the casualties. the event inside the premise led them to believe now was the time
to go and that is why they stormed the building when they did. a little details about what happened afterwards with two hostages killed as well as the lone gunmen. also a new south wales police officer was shot in the process, not giving us an update on that person's condition but that person was not killed in the siege of the chocolate shop in sydney. we will continue to cover that story and talk about the implications with the rest of the days broadcast, so we hope you will stay with us as we cover that big story out of sydney. more "bloomberg west" tomorrow. ♪
>> from bloomberg world headquarters in midtown manhattan, i am matt miller, in for mark crumpton. this is "bottom line," the this this andf economics with a mainstream perspective. to our viewers in the united states and those of you joining us from around the world, we have full coverage of the stocks in stories making headlines. senior markets corresponded julie hyman with the price war over the hottest toys on the market. peter cook monitors another deadline for obamacare enrollment. and we begin with shelby holliday.